Port Harcourt Refinery Set to Restart Production as Dangote Refinery Launch Nears

Nigeria's Port Harcourt Refinery set to resume production, raising hopes for reduced fuel prices as Dangote Refinery nears launch, boosting domestic refining capacity.

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Nasiru Eneji Abdulrasheed
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Port Harcourt Refinery Set to Restart Production as Dangote Refinery Launch Nears

Port Harcourt Refinery Set to Restart Production as Dangote Refinery Launch Nears

The Port Harcourt Refinery in Nigeria is ready to resume production in the coming weeks, with oil marketers anticipating a petrol price of around N500 per litre from the facility. The refinery, which has been undergoing rehabilitation, is almost ready to start releasing products according to dealers. "The Port Harcourt Refining Company (PHRC) in Nigeria is set to start production soon, with oil marketers preparing to load refined petroleum products from the facility," a source confirmed.

The Nigerian National Petroleum Company Limited (NNPCL) has stated that the Port Harcourt refinery will begin operations in about two weeks, with the Warri and Kaduna refineries also set to start operations soon after. "The NNPC has stated that the Port Harcourt refinery will commence operations in about two weeks, and the Warri and Kaduna refineries will also start operations soon," the source added. The refinery is expected to produce around 10 million litres of petrol daily in its first phase.

Marketers are making plans to purchase and load products in bulk from the PHRC and are also seeking additional supply from the NNPC Trading to satisfy the anticipated demand. The Independent Petroleum Marketers Association of Nigeria (IPMAN) members have visited the refinery and confirmed that the rehabilitation work has been largely completed. "Marketers are making plans to purchase and load products in bulk from the PHRC, and are also seeking to get additional supply from the NNPC Trading to meet the anticipated demand," an IPMAN representative stated.

Why this matters: The restart of the Port Harcourt refinery and the anticipated launch of the Dangote Petroleum Refinery in May 2024 are expected to significantly impact the supply and pricing of petroleum products in Nigeria. These developments offer hope for a reduction in fuel prices and increased domestic refining capacity, which could help address the country's long-standing reliance on fuel imports.

The imminent launch of the Dangote Petroleum Refinery, which is expected to begin supplying petrol to the market in May 2024, has further raised hopes for a reduction in petrol prices below N500 per litre. The Dangote refinery has already started selling diesel to marketers, which is expected to enhance diesel prices and supply in the country. The second phase of the Port Harcourt refinery is scheduled for completion in Q2 2024, which will increase the refining capacity to 150,000 barrels of crude oil per day.

Key Takeaways

  • Port Harcourt refinery in Nigeria to resume production in coming weeks
  • Petrol price expected around N500/litre from the refinery
  • NNPC says Port Harcourt, Warri, and Kaduna refineries to start operations soon
  • Marketers preparing to purchase and load products in bulk from Port Harcourt refinery
  • Restart of Port Harcourt refinery and Dangote refinery launch in 2024 to impact fuel supply and pricing